Watching last night’s State of the Union address, I was struck by the President’s remarks on healthcare. Ten years ago, drug costs were not on anyone’s radar. They made up 10% of an employer’s healthcare costs. Today, they make up 30% and the steadily rising costs are growing rapidly on everyone’s list of challenges.
This cost challenge is made all the more important when you consider that poor medication adherence contributes significantly to the need for more extreme healthcare costs. Drug costs are relevant because they impact the wallets of both employers and employees. Neither is immune from the fast-rising cost of medication. Making this reality ever more frustrating is the supply chain delivering these high cost drugs is full of inefficiencies.
The First Lady’s young guest with diabetes also struck a chord. 1 in 10 people has a diabetes diagnosis, often with little support to afford insulin and testing supplies. Consistent testing is an integral part of managing diabetes, and people should not have to make hard choices about how often to test or administer insulin based on what they can afford, instead of what their doctor advises.
A better alternative to this predicament offers companies and consumers with opportunities to better manage their healthcare spend. For example, a Roundstone client recently implemented a diabetes coaching program that also provides a discount on testing supplies. Once implemented, the group’s diabetic members had access to testing supplies at an 80% discount- and saved $4,500 on twice the number of testing strips.
Solutions like these are readily available for employers in the marketplace- even for midsize employers, who are often overlooked. The State of the Union was an opportunity for me to re-commit to our mission- affordable, quality healthcare for all. Roundstone is proud to serve small and midsize employers by advocating for employers to have more control over the costs of their healthcare plans.